Hoegh LNG suspends dividends, slashes costs

Norway’s Hoegh LNG will stop paying dividends to investors as part of a move in reducing costs due to the uncertain environment caused by the Covid-19 pandemic.

Hoegh’s board has decided to suspend dividends, bonus scheme for executive management and onshore personnel until further notice, the floating LNG player said on Monday.

The cost-saving plan will focus on overhead and vessel operating costs.

Hoegh is targeting $9 to $11 million in savings for 2020, compared with the company’s original plans and budgets for this year.

The estimated effect includes the elimination of bonus and other costs, as well as deferring costs, scheduled maintenance and projects to subsequent periods, it said.

Hoegh said about one-third of the estimated effect relates to costs which it will move to 2021.

In addition, chairman of Hoegh LNG’s board Morten W. Høegh and director Leif O. Høegh have waived their board remuneration for 2019, payable in 2020.

Morten W. Høegh also waived the board remuneration payable by Höegh LNG Partners.

“The impact of the Covid-19 crisis on the company’s operations and business outlook will be continuously monitored and evaluated, and further cost reduction and liquidity preservation measures could be implemented at future dates,” Hoegh LNG said.

New credit facility

Hoegh LNG has executed a new revolving credit facility worth up to $80 million.

The company announced this facility provided by three of the company’s relationship banks in January this year.

Hoegh will use $65 million of the facility to repay the company’s HLNG02 bond loan which matures in June 2020.

The Norwegian company will use the remaining funds for general corporate purposes.

- Advertisements -

Most Popular

Deutsche ReGas starts commissioning Mukran FSRU terminal

LNG terminal operator Deutsche ReGas has kicked off commissioning activities at its FSRU-based LNG import facility in Germany’s port...

CEO: DOE’s permit pause will not slow down Cheniere’s LNG expansion plans

US LNG exporting giant Cheniere is going "full steam ahead" with plans to expand its Sabine Pass and Corpus...

Venture Global seeks more time to complete Calcasieu Pass LNG terminal

US LNG exporter Venture Global LNG has requested more time from the US FERC to complete the commissioning of...

More News Like This

Indonesia’s PGN, Hoegh LNG settle Lampung FSRU dispute

Norwegian FSRU player Hoegh LNG has resolved a dispute with Indonesian state-owned gas firm PT Perusahaan Gas Negara (PGN),...

Hoegh LNG, SPEC ink Cartagena FSRU deal

Norwegian FSRU player Hoegh LNG and Sociedad Portuaria El Cayao (SPEC LNG) have signed a new agreement for Colombia's...

VTTI and Hoegh LNG join forces on Dutch FSRU terminal

Rotterdam-based storage terminal owner VTTI, co-owned by Vitol, IFM, and Adnoc, is joining forces with FSRU player Hoegh LNG...

Indonesia’s Lampung FSRU wraps up 52nd STS LNG transfer

Hoegh LNG’s Lampung FSRU serving Pertamina’s Perusahaan Gas Negara off the southeast coast of Sumatra in Indonesia has completed...